Ryan Salame, another former executive of FTX, has been jailed over his part in the cryptocurrency giant’s implosion in late 2022.
In November last year, a jury found Ryan Salame guilty on seven counts of fraud and conspiracy related to the collapse of FTX. Salame, who had been the co-CEO of FTX’s Bahamian subsidiary, was sentenced to 90 months in prison by US federal prosecutors.
His sentence exceeded the five to seven years that prosecutors had recommended.
Earlier this year, Sam Bankman-Fried, the founder of FTX, received a 25-year prison sentence for embezzling $8 billion (£6.3 billion) from customers of the crypto exchange.
Bankman-Fried’s fraudulent activities came to light after rumors of financial trouble caused a run on deposits in 2022, leading to FTX’s implosion.
Damian Williams, US Attorney for the Southern District of New York, stated, “Salame’s involvement in these federal crimes undermined public trust in the American electoral system and the financial system’s integrity.”
Salame admitted guilt in September of last year to violating political campaign finance laws and operating an unlicensed money-transmitting business.
Once one of the largest cryptocurrency exchanges globally, FTX attracted millions of users who traded cryptocurrency on its platform and turned Bankman-Fried into a business celebrity.
However, the company’s collapse revealed significant fraudulent activities.
In addition to his prison term, Salame will serve three years of supervised release and must forfeit more than $6 million while paying over $5 million in restitution.
Salame is one of four former top executives from Bankman-Fried’s companies to plead guilty, alongside former Alameda CEO Caroline Ellison, ex-FTX technology chief Gary Wang, and former FTX engineering head Nishad Singh.
Prosecutors have called FTX’s downfall one of the biggest financial frauds in US history. A New York jury convicted Bankman-Fried last year of wire fraud and conspiracy to commit money laundering.
The trial exposed how he misused customer funds for personal expenses, political donations, and other investments.
Salame, a key associate of Bankman-Fried, faced charges that revealed extensive misconduct within the company.
The financial instability rumors in 2022 led to a rush on withdrawals, ultimately resulting in the firm’s collapse and the exposure of significant financial misconduct.
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